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By Sruthi Shankar
(Reuters) - Banks led a drop in U.S. stocks on Friday, as results from big lenders including JPMorgan failed to enthuse investors keeping a wary eye on Russia's plan to consider banning some U.S. imports.
Shares of the biggest U.S. bank by assets dropped about 3 percent, overturning an initial gain in premarket trading when the bank reported a record quarterly profit that fell slightly short of expectations.
Analysts cast the losses as driven in part by a bullish 10 days for the lenders, whose shares have generally been shakier in 2018 after doubling in value in a little over 18 months.
"We had such a huge run up in 2017 and early 2018 that the market pretty much discounted everything was going to come down the pipe," said Crit Thomas, global market strategist at Touchstone Investments.
"Yeah the earnings are good, but just not good enough."
The bank results blow the starting whistle on U.S. earnings season, with Thomson Reuters data predicting profits at S&P 500 companies increased by 18.4 percent from a year ago, their biggest rise in seven years.
While the U.S. economy is performing well, geopolitical issues are weighing this year on stock markets after almost a decade of uninterrupted gains.
Senior lawmakers said on Friday that Russia's lower house of parliament would consider draft legislation giving the Kremlin powers to ban or restrict a list of U.S. imports, reacting to new U.S. sanctions on Russian tycoons and officials.
"I have been up to this point, pretty adamant that a trade war is going to be much less of a war and more of a skirmish," said Thomas. "I'm starting to come around to maybe this almost inevitable."
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)